Student Loan Refinance Calculator
Compare a student loan refinance: new monthly payment, monthly savings, and total interest at a new rate and term.
Independently verified for accuracy
Calculator by Toolsloft ↗- New payment
- 414.55
- Monthly savings
- 35.45
- New total interest
- 9746.44
- New total paid
- 49746.44
This calculator shows the new monthly payment and total interest if you refinance a student loan at a different rate and term, and how it compares to your current payment. Enter your balance, current payment, the new rate, and the new term to see the monthly difference. Use it to judge a refinance offer before you apply.
How this is calculated
The new payment comes from the standard amortizing-loan formula on your current balance at the new rate and term, Payment = P*r*(1+r)^n / ((1+r)^n - 1). Monthly savings is your current payment minus the new payment, which can be negative if the new term is shorter.
How to use
- Enter your current balance and current monthly payment.
- Enter the new rate and new term in months you are offered.
- Read the new payment, monthly savings, and total interest.
Examples
- $40,000, $450/mo now, 4.5% / 120 mo:
new payment $414.55, saves $35.45/mo - $25,000, $300/mo now, 5% / 84 mo:
new payment $353.35 (a shorter term costs more monthly)
FAQ
- Why might my new payment be higher?
- A shorter term raises the monthly payment even at a lower rate, because you repay the balance over fewer months. The trade-off is far less total interest. Monthly savings shows as negative when that happens.
- Should I refinance federal student loans?
- Refinancing federal loans into a private loan gives up federal protections such as income-driven repayment and forgiveness programs. Weigh those benefits against the rate saving before you refinance.
- Does a lower rate always save money overall?
- A lower rate cuts interest for the same term, but stretching to a longer term can raise total interest even as the monthly payment drops. Compare total interest, not just the monthly figure.